Ms Marrian's speculations have been removed from this extract.
  _____  

 

 

BusinessDay.gif

 

 

Vavi denies fresh claims

 

 

Natasha Marrian, Business Day, Johannesburg, 4 March 2015

 

The crisis in the Congress of South African Trade Unions (COSATU) deepened
on Tuesday with fresh allegations of procurement irregularities levied at
general secretary Zwelinzima Vavi.

 

COSATU's three-day central executive committee meeting ends on Wednesday.
The meeting is expected to receive a forensic report by auditors
SizweNtsalubaGobodo, which was handed over to national leaders last month.
The report alleges that Mr Vavi had not followed tender procedures in
awarding a contract to a service provider.

 

The federation held a financial committee meeting last week at which it
forecast a R4m deficit for 2015. This was due to COSATU having been able to
effect only a slight increase in affiliation fees, as well as not getting
R1m a month in affiliation fees from the National Union of Metalworkers of
SA, along with legal expenses and other costs.

 

COSATU's total affiliate fees are expected to drop from R76m in 2014 to R69m
this year. Its total spending is expected to be about R61m.

 

Vavi.jpg

 

The fresh claims, coupled with Mr Vavi's boycott of the meeting, have
hardened attitudes against him and insiders said on Tuesday that he could
well be suspended again or even dismissed.

 

COSATU's constitution allows for the removal of office bearers by the
committee if they have committed misconduct, neglected their duties or acted
in a manner detrimental to the federation.

 

It is understood that COSATU requested SizweNtsalubaGobodo to extend the
scope of an earlier investigation to include whether there were any
irregularities in the awarding of a contract to VMS Technologies for
security and information technology systems.

 

The earlier investigation was linked to a possible conflict of interest
between Mr Vavi and VMS Technologies. The latest allegations include:
failure to follow COSATU's tender policy, failing to conduct a comparative
analysis of prices ahead of awarding the contract, and failing to engage
with more than one supplier before finalising the contract.

 

Mr Vavi has denied the claims.

 

In a written response, he said documents showed four service providers were
approached - Phambile (Xerox), Katlego (Canon), Gestetner, and VMS
Technologies. He argued that COSATU did not have a tender policy as it had
never adopted a draft presented at three central executive committee
meetings. Mr Vavi also said procurement was governed by COSATU's financial
policy, which required that three quotes be obtained prior to a decision.

 

There were also allegations that the procurement of refrigerators was never
submitted to a tender. But Mr Vavi argued that VMS Technologies was to
provide the refrigerators at factory cost.

 

 

From:
http://www.bdlive.co.za/national/labour/2015/03/04/fresh-vavi-claims-and-COS
ATU-cash-crisis

 

 

 

 

 

 

 

 

 

 

 

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